Jindal group to invest Rs 7,930 cr under the PLI scheme

NEW DELHI: Jindal Steel and Power Limited (JSPL) will spend Rs 7,930 crore under the PLI scheme for specialty steel to manufacture eight types of high-end alloy in the country, its Managing Director Bimlendra Jha said.

JSPL is one of the qualifiers of the government’s production linked incentive (PLI) scheme which aims to increase the output of value-added steel using new age technologies in the domestic steel sector. On December 9, the government announced the selection of 67 entries with an investment potential of Rs 42,500 crore under the scheme. The proposed investments are expected to generate 70,000 job opportunities and add 26 million tonnes of speciality steel capacity in the country.

When asked about the share of JSPL in the said investment amount, Jha replied, “Our commitment to the PLI scheme (for specialty steel) will be around Rs 7,930 crore.”

JSPL through subsidiary company Jindal Steel Odisha has submitted the highest number of entries to manufacture eight types of specialty steel products, he said.

Sharing the details of the grades, Jha said the company will make “HR coil, sheets and plates API GR which find application in sectors like oil and gas”.

The high tensile sheets which the company would be manufacturing under the PLI scheme are used in structural grade fabrication and automobile industry, he said. Grades like auto-GR steel AHSS and cold rolled and coated products are used by the auto sector, while the tin mill products are used in tin and food processing industry.

He further said coated/plated products of metallic/non-metallic alloys, colour coated and AI-Zn coated (galvalume) grades will be used by industries like white goods and auto and roofing.

The Union Cabinet in July last year approved a Rs 6,322-crore PLI scheme to boost the production of speciality steel in India.

As per an official document, Tata Steel has submitted applications to manufacture seven types of speciality steel products, while JSW Steel applied for six categories.

ArcelorMittal Nippon Steel (AMNS) India submitted four entries, while state-owned Steel Authority of India Limited (SAIL) submitted the least number of applications for just two specialty steel categories